The global template approach has created a set of standardized, uniform processes based on Essar best practices.
IT template speeds Indian steel maker’s expansion
Essar Steel is one of India’s ambitious breed of expanding steel manufacturers, with businesses stretching from mining to retailing. The company has a current output of 8.6 million tons a year, but has aggressive growth plans in India, Asia, and the Americas, to increase this to 14 million tons by 2011-12.
The company’s IT landscape is highly complex due to its multifaceted manufacturing processes. So to support its rapid expansion plans, the company needed to standardize its processes. As part of the project, it also wanted to capture its best practices in an innovative Essar Steel Template that it could implement across all areas of the company, and which would provide a clear integration strategy for new acquisitions or greenfield plants.
Selecting SAP as its main ERP supplier, Essar initiated a complete re-engineering of its existing IT landscape between 2007 and 2008. After a year of stabilizing the new system, the company then started to develop a Global Steel Template, designed to standadize best-practices processes and IT. This is now being rolled out globally as an integrated system, incuding MES and planning.
Improvements are being felt in many areas of Essar’s business. For example, before the new system was installed, all production planning and scheduling was done manually, as was export and import documentation, and there was no centralized pricing system. Today, planning has become paperless and production confirmation is happening on a real-time basis; master pricing strategies have been introduced and automated for better control over discounts, eliminating manual intervention; and all export and Import documentation is now generated through the system.
The global template approach has created a set of standardized, uniform processes based on Essar best practices. Among other things, it has helped speed up customer orders, enabled the company to deliver customer orders more profitably, and allowed the company to centralize and reduce its IT organization into a more efficient group.
Perhaps most importantly for future growth, Essar expects its new steel template to help ensure faster integration of new acquisitions, and drive the rapid rollout of standard systems at greenfield plants.